JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil producer, is testing fuel with a view to increasing to 40% from 35% the share of palm-oil combined into biodiesel next year, the energy ministry stated.

If executed, the B40 required could increase biodiesel consumption to up to 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.

"We hope the trials might be ended up in December, so that full implementation of B40 could be brought out in 2025," energy ministry senior main Eniya Listiani Dewi said in a statement on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the market had the capability to fulfill B40 demand, with set up capacity expected to increase to 20 million KL each year next year from 18 million KL now.

"However we will require more basic materials to meet B40 need," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.

The biodiesel industry would need 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million lots needed this year, he included.

Indonesia's biggest palm oil association GAPKI stated a decline in exports meant there would be adequate raw materials to supply the B40 required in the meantime.

But the industry would need to examine "which one would be better", GAPKI chairman Eddy Martono stated, describing the possibility a boost in exports would make supplying the domestic market less viable.

Indonesia's palm oil output is approximated to reach 54.4 million loads in 2024, a 2.26% boost from last year, while exports are expected to decrease by 2.47% to 29.5 million loads as domestic usage rose, driven by biodiesel required.

The ministry had tested the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier today, while planning to evaluate the B40 mix on agriculture equipment, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)